Knowledge Based Guidance for Sustainable Growth...

Automobile

Automobile industry has been a witness to a number of fluctuations in the last decade, with the recession taking a toll on the sales and overall growth of the industry in 2008. But interestingly,2009-10 saw a massive growth in the demand for passenger vehicles that led to a 28% increase in sales in this segment. Sales of commercial vehicles increased by 36% from the previous year and two-wheelers also witnessed a growth of more than 25%. The trend continued till 2010-2011. This was followed by a decreasing growth rate in the next year, that is, in 2011-2012, with only 6% increase in sales of passenger vehicles. In 2012-13 the growth rate of commercial vehicles was negative.

These abrupt changes are caused by several factors which have affected the industry as a whole and till today continue to govern the scenario of the automobile industry in India. Sky high rise in fuel price, high amount of taxes and weak economy of the country, leading to the decreasing value of the Indian Rupee, have culminated in the increasing cost of using vehicles, making them out of reach of common people.

In this scenario automotive companies need to focus not on the instant profit but rather on sustainable growth. Keeping pace with the changing dynamics of the sector every company has to fit in to the changing forces that are governing the industry.

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